20 Aug 2019
M7 significantly increases occupancy and value at two offices in Schiedam, Rotterdam
M7 Real Estate (“M7”) the pan-European investor and asset manager has, on behalf of M7 EREIP IV, significantly increased the occupancy and value of two office buildings, Overschieseweg 200-232 and Overschieseweg 300-332, Schiedam, Rotterdam.
The two modern tower blocks, acquired in April 2018, comprise a total of 10,728 sq m of office space and are located in a suburban part of Rotterdam. The assets were acquired with a vacancy rate of 48% (c. 5,150 sq m). In addition, there were several short term leases with a resulting WALT of just 1.9 years at acquisition.
During the acquisition phase, M7 was approached by a potential tenant, CAIW, who were looking for a single tenant building of 5,540 sq m of space. M7 managed to negotiate moving a current tenant, Staatsbosbeheer, to the other building to free up the required space.
In addition, CAIW required a refurbishment within a short timeframe. This was delivered to them in a turn key state of condition within 4.5 months, from draft design to delivery. In addition to the deal with CAIW and Staatsbosbeheer, another tenant expanded its leased premises by approximately 350 sq m and two further new lease agreements were agreed for circa 460 sq m. This increased total occupancy to approximately 96% and the asset is expected to be fully let within the next months.
Lease agreements with several tenants have been regeared with a subsequent improvement of the WALT to 3.9 years. The estimated value of these assets has consequently increased by circa 130%.
Ryan Edwards, Investment Manager at M7 commented: “Signing these lease agreements underlines the quality of the office space we have created at the two buildings. Our asset management plan included refurbishment of the vacant space and improvement of the WALT to increase income and capital returns.”